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Tech Alert: Digital Wallets for a Digital World - The Players and the Concerns for Consumer Adoption

PayPal, Google (GOOG) Wallet and Apple (AAPL) Passbook Lead; Amazon (AMZN), MasterCard(MA) and NXT-ID (NXTD) Enter Market

Will Biometrics Play a Key Role in Addressing Security Concerns in the Payment Industry?

Featured Mobile Security Company on - NXT-ID, Inc. (OTC:NXTD)

New York, NY - Point Roberts, WA - August 20, 2014 ( Newswire) a global news source covering leading sectors including biometrics, issues commentary from analysts and experts on the growing digital wallet market.

Jason Peaslee, Managing Partner at Thrive Analytics, Isabelle Moeller of the Biometrics Institute and Gino Pereira, CEO of NXT-ID, Inc. (OTCQB:NXTD), a biometric company with digital wallet technology, talk about the sector and how biometrics may play a role in one of the major barriers to consumer adoption of the digital wallet technology - security.

According to the report, '2014 Digital Wallet Usage Study' - "A surprisingly high number of U.S. consumers recognize digital wallets as an alternative to cash-based transactions, however usage remains at less than one-third, according to a new study from Thrive Analytics, a local search and digital marketing research and customer engagement strategy consulting firm. The 2014 Digital Wallet Usage Study revealed that despite nearly 80 percent of consumers being aware of digital wallets - including major players like PayPal, Google Wallet and Apple Passbook - security concerns remain the main barrier to adoption, followed by lack of usability vs. credit cards/cash (37 percent) and not being top of mind as a form of payment at the time of purchase (32 percent)."

The race for digital wallets is on as recently rolled out a digital wallet for smartphones. The new app, Amazon Wallet, allows people to store loyalty cards or gift cards for use at checkout. MasterCard's digital wallet is apparently live in 10 markets, with plans to add more countries later this year. In July of this year, Isis (a joint-venture between AT&T, T-Mobile and Verizon), in the mobile payment space, announced rebranding plans to avoid association with the same-named terrorist militant group.

Newcomer NXT-ID, Inc. (OTCQB: NXTD), recently introduced its Wocket™ smart wallet digital wallet. Wocket acts as a personal vault - biometrically securing the info and is differentiating itself in the market by being separate from a smartphone.

Gino Pereira explained NXT-ID's strategy and technology saying, " Time and time again, research has shown that most consumers don't want to put payment technology on their phones at the moment. They like using their credit cards and are concerned about battery life and security. Touchless payments have not yet delivered in providing a tangible benefit to consumers to enhance adoption, although the industry is well aware of this and is making an effort to provide additional features. At NXT-ID, we have a different approach with the introduction of an actual smart wallet that can substitute for your current physical wallet. The adoption of biometrics alone does not address all concerns about security in the new payments world. They do help with access control but the encryption of data is still the number one desired feature. In addition, one must carefully consider the form of biometric used. If someone hacks your password - you change it, but if your biometric identity gets hacked - it's not so easy! This is a potential vulnerability of fingerprint biometrics. Our preference and the method that we use in our Wocket smart wallet, is dual factor voice authentication that does not leave any traces behind." asked Jason Peaslee, Managing Partner at Thrive Analytics, the firm that recently released the Research Report '2014 Digital Wallet Usage Study', to share his findings.


Based on your research, the top three digital wallets currently used are PayPal (79 percent) Google Wallet (40 percent) and Apple Passbook (17 percent). Can you give input as to why PayPal is so high compared to the other two?

A: Jason Peaslee, Managing Partner at Thrive Analytics

PayPal has built itself into a household name and is available on desktop as well as mobile platforms. Familiarity with their brand and the ease of use, combined with strong security measures, place it in high confidence among consumers.


Your report showed one of the key concerns is security. What security is currently in place for the top digital wallets and what are consumers looking for as a stronger form? And what are you seeing in the pipeline from the top three? How much of a role is biometrics playing?

A: Jason Peaslee, Managing Partner at Thrive Analytics

Security is a main concern. The strength of the authentication process for mobile payments is what will determine how secure mobile payments are. Providers must be able to connect the identity of the user to the authorization of the transaction. Smartphones can assist with risk assessment of transactions and user authentication by using phone data such as GPS, 3G location, proximity to Wi-Fi locations and the number and type of applications on the device. These can build a unique fingerprint for each phone user. Eventually, biometrics could play a huge role in tying everything together.


What do you see as the next evolution to attract more consumer use?

A: Jason Peaslee, Managing Partner at Thrive Analytics

Both digital wallet providers and retailers have made strides in fostering greater awareness, but to promote higher adoption rates, we expect marketplace vendor consolidation, higher security protocols and the introduction of comprehensive features such as seamless integration with POS systems, loyalty programs and enhanced shopping experiences. I also see wearables and Apple playing huge roles as well.

According to the Biometrics Institute Industry Survey 2014, mobility is seen as the most significant development for the coming years followed by the adoption of mobile payments/ m-commerce.

Isabelle Moeller, of the Biometrics Institute says, "I personally think we are going to see biometrics evolve in many places where secure transactions are needed. Biometric technologies are extremely valuable, but must be deployed with security and privacy front of mind. Biometric authentication has the potential to ease the burden of security given its simplicity and usability. We have seen many successful implementations where biometrics have helped to transform identity management, privacy protection and identity security like electronic passports facilitating a better and more secure travel experience or large-scale identity management systems such as the Indian Unique Identity (UID) scheme which facilitates the delivery of government's services to the poor and marginalised.

If we get the privacy and vulnerability issues addressed and create trust and control for the consumer, I think biometrics have a great future."

Goode Intelligence predicts that by 2019 there will be 5.5 billion users of mobile and wearable biometric technology around the globe.

About Biometrics Institute

The mission of the Biometrics Institute is to promote the responsible use of biometrics as an independent and impartial international forum for biometric users and other interested parties.

About Thrive Analytics

Thrive Analytics is a consulting firm that specializes in all areas of Customer Strategy and Marketing. We believe that a clear understanding of what customers want, need and value most can lead the way toward a competitive advantage. With that in mind, all our services are focused around the customer. We offer a full suite of marketing research services, customer experience evaluation tools, customer loyalty programs, data analytic services, and measurement tools to help our clients understand their customers. In addition, we provide outsourced services for short-term projects, marketing campaigns, and new go-to-market sales strategies. We believe our responsibility to our clients is to blend the right combination of analysis from our analytical tools, and generate actionable insights that deliver impactful results.

About NXT- ID Inc. - Mobile Security for a Mobile World

NXT-ID, Inc.'s (OTCQB: NXTD) innovative MobileBio™ solution mitigates consumer risks associated with mobile computing, m-commerce and smart OS-enabled devices. The company is focused on the growing m-commerce market, launching its innovative MobileBio™ suite of biometric solutions that secure consumers' mobile platforms led by the Wocket™ ; a next generation smart wallet designed to replace all the cards in your wallet, no smart phone required. The Wocket works anywhere credit cards are accepted and only works with your biometric stamp of approval.

NXT-ID' wholly owned subsidiary, 3D-ID LLC, is engaged in biometric identification has 22 licensed patents in the field of 3D facial recognition  ,

About is a global news source for investors following leading business sectors including biotech, tech, mining, mobile, energy, water, defense and security, renewable energy, food and beverage stocks and Latin American stocks.

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